How to Lower Your Heirs’ Tax Bite
by Admin
Posted on 02-03-2024 11:57 AM
Taxes can take a significant bite out of your wealth, both at the federal and state levels.
Several different types of taxes can come into play and affect the value of your estate that’s passed on to your heirs. Here are the types to be aware of.
1. Wills and Trusts
As you begin to think about
estate planning
, it can be helpful to understand how an estate plan works and what it can do.
With these basics under your belt, you can begin to make the right choices to help your estate planning attorney prepare a plan to fit your needs and wishes. An estate plan can help you provide for your family’s future. To discuss how you can create an estate plan that fits your family’s needs, contact oc wills & trusts for a free consultation.
Most wills or trusts incorporate guardian designation; however, not all of them. Guardian designation in estate planning is often overlooked. If you have minor children, make sure you assign an individual or couple to support your kids. These designated guardians should share your views, be financially sound, and be genuinely willing to raise your children in the event of both parents’ passing.
At evergreen elder law, we help seniors, veterans, and their spouses to protect their loved ones with carefully drafted estate plans. Reach out to us for help with estate planning , wills and trusts , probate , veterans’ benefits , special needs planning , long-term care planning, medicaid , and more. For a free consultation with a skilled estate planning lawyer, contact us today or call us at (509) 325-5222. We offer estate planning services in washington state with offices in spokane and tri cities.
last will and testament: also referred to as your will, is a legal document that describes how your assets are distributed, who will manage the settlement of your estate, and who will be the guardian for minor children. The following is required to make your will legally valid. It must be in writing. Although you can compose your will online, you must still follow your state's signing and validity requirements to make it legally valid. It must include witnesses. Your state has rules regarding any notary and witness requirements. You must follow these rules to the letter. general durable power of attorney (also known as financial power of attorney): this enables someone to act on your behalf if, during your lifetime, you are in a condition where you are unable to sign or transact for yourself.
Absolutely. Estate planning deals with more than just what happens when someone dies. It involves planning for our lifetime as well. During estate planning, most people should plan for possible mental or physical incapacity during their lifetimes. This planning is especially important for a single person who may wait to designate someone other than a relative to manage his or her property and affairs in the event of incapacity. A living will or a durable heathcare power of attorney can enable you to pick someone to make decisions for you about medical treatment, including decisions about using or terminating life support systems.
A durable financial power of attorney is used to designate a trusted individual to make financial decisions when you are no longer able to handle such matters on your own. Generally you can grant specific powers to a person, called your agent, or you can grant them control over all of your finances. For example, if you want your agent to have control over your investment accounts, savings account, and real estate but not your vehicle or business, you would be able to specify those wishes. Your agent is a fiduciary and has a fiduciary responsibility to you. What this means is that your agent must use your assets for your best interest and cannot use your assets in a way that would benefit your agent and harm you.